Board of directors’ progress report
2.3.2

Analysis of revenues and expenses

FY2017 revenues totaled RUB 71,090 million (+RUB 5,638 million or 8.6%YoY), with transmission revenues amounting to RUB 69,873 million (+ RUB 6,170 million YoY). Revenues gained due to grown average tariff, reduced load loss prices (due to exclusion from settlements with customers for electricity transmission since 01.08.2017) and changes in consumer structure (voltage classes).

Expenses plus administrative costs reached RUB 64,372 million (+ RUB 3,984 million or 6.6% YoY). The hike is mainly driven by grown non-controllable expenses, namely increased expenses on loss compensations caused by grown average non-regulated electricity purchase price and lowered price of load losses, payments to PAO FSK UES and other grid operators.

Pre-tax profit totaled RUB 5,713 million (+ RUB 904 million YoY). FY2017 net income totaled RUB 4,570 million (+ RUB 1,264 million YoY). The rise of net income is accounted for by increased transmission revenues and additional revenues from sanctions for non-fulfilled contractual obligations.

Key financial and economic metrics, RUB million:

FY 2017 FY 2016 FY 2015
Total revenues, comprising: 71,090 65,452 60,535
Revenues from electricity transmission 69,873 63,703 58,227
Revenues from connection 874 1,336 1,862
Revenues from electricity sales 0 0 0
Other revenues 343 413 446
Total expenses -63,243 -59,338 -55,114
Gross profit 7,847 6,114 5,421
Administrative costs -1,129 -1,050 -955
Commercial costs 0 0 0
Profit (loss) from sales 6,718 5,064 4,466
Interest receivable 120 158 291
Interest payable -859 -969 -870
Income from shareholdings 237 314 161
Other revenues 5,184 6,461 5,864
Other expenses -5,687 -6,219 -6,707
Pre-tax profit 5,713 4,809 3,205
Income tax and other payments -1,143 -1,503 -739
Net income (loss) 4,570 3,306 2,466
EBITDA* 11,495 10,447 8,453
* EBITDA = pre-tax profit – interest payable + depreciation and amortization (line 2300 F2 – line 2330 F2 + line 6514 F2.1 + line 6554 F2.1. + line 6564 F2.1.
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1About company
1.1Mission and strategic goals
1.2Market share
1.3Management systems
1.4Key 2017 events
2Board of directors’ progress report
2.1Letter to stockholders
2.2Production capital formation
2.2.1Network exploitation
2.2.2Electricity transmission
2.2.3Technological connection
2.2.4Development of telecommunications and IT systems
2.2.5Investments
2.2.6Innovations
2.2.7Efficacy enhancement
2.3Financial capital formation
2.3.1Description of tariff policy
2.3.2Analysis of revenues and expenses
2.3.3Analysis of receivables and payables
2.3.4Credit ratings and bonds
3Corporate governance
3.1Corporate governance practices
3.2Corporate governance system
3.2.1General meeting of stockholders
3.2.2Board of Directors
3.2.3Board of directors’ committees
3.2.4General director and executive board
3.2.5Remuneration and compensation policy
3.3Oversight system
3.3.1Board of internal auditors
3.3.2Independent auditor
3.3.3Internal control
3.3.4Security and anti-corruption
3.3.5Risk management
3.4Investor and stockholder relations
3.4.1Shareholder capital structure
3.4.2 Shareholder rights
3.4.3The company and stock market
3.4.4Communications with market participants
3.4.5FAQ
3.4.6Allocation of profit
3.4.7Contact information
4Stakeholder
4.1Human resources management
4.2Customer support
4.3Supplier relationship management
4.4Public and goverment relations
4.5Company’s transactions
4.6Subsidiaries and financial investments
4.7Environment protection
5Appendices
5.1Prepared under Russian accounting standards
5.2Prepared under international financial reporting standards
5.3Corporate governance code compliance report
5.4References
5.5Abbreviations and acronyms
5.6Sitemap